Bloomberg News

Eletrobras Estimates Transmission Assets Worth 11 Billion Reais

December 03, 2012

Centrais Eletricas Brasileiras SA (ELET6) estimates its transmission assets are worth 11 billion reais ($5.2 billion) and may receive compensation based on revised government rules, Chief Financial Officer Armando Casado said.

The company expects a “significant” amount for the assets, which were built before May 2000, from Brazil’s government, Casado told reporters today in Brasilia. The specific amount isn’t yet known, he said.

Eletrobras, as the state-controlled company is known, also expects its generation assets will be reevaluated higher because of a separate government ruling, he said.

The rules, which mean less revenue, force the company to seek cost cuts, Casado said. He said there aren’t plans for mass firings as the company is studying asset sales and voluntary dismissals.

Eletrobras today approved renewing for 30 years concessions due to expire between 2015 and 2017, after Eletrobras shareholders approved government conditions for renewal.

To contact the reporter on this story: Mario Sergio Lima in Brasilia Newsroom at mlima11@bloomberg.net

To contact the editor responsible for this story: James Attwood at jattwood3@bloomberg.net


Too Cool for Crisis Management
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus